Dow Jones drops 200 points ahead of key inflation data; Top 6 stocks to buy and watch
Dow Jones futures edged higher ahead of Tuesday’s open after the Dow Jones Industrial Average posted a two-day winning streak on Monday. Top six stocks to buy and watch including hot IPO stocks Mobileye (MBLY).
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Early Tuesday, the producer price index (PPI) will launch at 8:30 a.m. ET. PPI is expected to increase 0.5% in October from the previous month. And wholesale inflation is expected to rise 8.3% from a year ago.
Q3 earnings season continues this week, with important reports coming from Dow Jones stocks Cisco system (CSCO), Home Depot (HD) and Walmart (WMT), with Application materials (AMAT), Kohl’s (KSS), Lowe’s (SHORT), Macy’s (USA), Nvidia (NVDA), Palo Alto Networks (PANW) and Target (TGT).
Stock market today
On Monday, the Dow Jones Industrial Average lost 0.6%, or 211 points, and the S&P 500 fell 0.9%. The tech-heavy Nasdaq composite sold off 1.1%.
Between exchange traded moneyNasdaq 100 Invesco QQQ Trust Tracker (QQQ) fell 0.9% and the SPDR S&P 500 (SPY) decreased by 0.8%.
Giant electric car Tesla (TSLA) fell 2.6% on Monday. Between Dow Jones Securities, Apple (AAPL) traded down 0.4% and Microsoft (MSFT) lost 2.25% in stock market today.
Among the top stocks to buy and watch, IBD Rankings share Arista Networks (NET), IBD SwingTrader share Synthetic engine (GM), GlobalFoundries (GFS), Mobileye and Phillips 66 (PSX) – as well as the name Dow Jones Caterpillar (CAT) – is one of the top stocks to buy and watch.
Arista Networks is a IBD Rankings stock watchlist and also introduced in last week’s Stocks Near Buy Area column, along with three other top stock ideas. General Motors is a IBD SwingTrader share. And Mobileye was the highlight of last week IPO leader.
Top 4 growth stocks to buy and watchrent Stock Market Rally
Dow Jones Futures Today: Treasury yields, oil prices
Before Tuesday’s opening bell, Dow Jones futures were up 0.2 percent from fair value, while S&P 500 futures were up 0.25%. The tech-heavy Nasdaq 100 futures contract is up 0.35% from fair value. Remember that action overnight in Dow Jones Futures and elsewhere it doesn’t necessarily translate into actual trading the next week stock market meeting.
The yield on the 10-year Treasury note edged higher to 3.86% on Monday, recovering a fraction of last week’s decline. Meanwhile, US oil prices fell more than 4% as West Texas Intermediate futures traded just above $85 per barrel.
What to do during a stock market rally
Now is a great time to read IBD’s The Big Picture column after the stock market trend changed from “uptrend under pressure” to “confirmed uptrend.”
At this point, it’s important to be flexible. Despite recent gains, investors should maintain a cautious stance, limiting trades to no more than 40%. Wait for more confirmation of continued strength before adding exposure. The immediate distribution would be a sign to stay more defensive.
If your recent stock purchases continue to make progress, you should feel more confident in a stock market rally. But strong reversals and losing trades will of course be signs to keep your dough drier.
(Payment procedures IBD Stock List like IBD 50 and Stocks near the buy zonefor more warehouse ideas.)
Five Dow Jones stocks to buy and watch now
Dow Jones Stocks to Watch: Caterpillar
Dow Jones member Caterpillar is trying to break above 238 of a cup base buy points, based on IBD MarketSmith pattern recognition. Shares of Caterpillar were flat on Monday.
CAT stocks boasts an impressive score of 97 out of 99 perfect IBD Composite Ratings, according to Check out IBD stock.
Top stocks to buy and watch: Arista, GM, GlobalFoundries, Mobileye, Phillips 66
IBD Rankings Arista Networks stock has managed to break above 132.97 of a volatile base buy points against the backdrop of Monday’s 2.1% gain. Shares quickly top the entry before closing just below it.
Automobile manufacturers and IBD SwingTrader General Motors stock gave up a 40.20 cup-with-handle buy point during Monday’s 2.8% drop. If the stock re-enters, the buy zone tops at 42.21.
Recent IBD Stocks of the Day GlobalFoundries is trading about 1% away from a 66.06 buy point on a cup basis after gaining 0.4% on Monday.
IPO Leader Mobileye broke out above 29.96 buy points of IPO basis, based on IBD MarketSmith . Pattern Recognition, but the stock reversed course on Monday and is back below that level. The 5% chase zone will top out at 31.46.
Monday’s 50 IBD Stocks To View SelectionPhillips 66, breaking through 110.08 of the handle sole buy points. Shares spiked on Friday, but gave up part of that gain on Monday. The stock is in a 5% buy zone, rising to 115.58.
Join IBD experts as they analyze the top stocks in the current stock market rally on IBD Live
Tesla shares
Tesla shares fell 2.6% on Monday, clinching a two-day winning streak and erasing Friday’s gains.
The stock is down more than 50% to its 52-week high and well below the 50 and 200-day moving averages.
Dow Jones Leaders: Apple, Microsoft
Between Dow Jones SecuritiesShares of Apple fell 0.4% on Monday, but are still holding above their recently recovered 50-day threshold. Shares are down about 20% from their 52-week high.
Microsoft fell 2% on Monday, returning all of Friday’s gains. The stock paused the session’s slide at the 50-day level. The software giant is still down more than 30% from a 52-week high.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
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